19th Apr 2005 07:00
Bellway PLC19 April 2005 NATIONAL HOUSEBUILDER BELLWAY p.l.c. TODAY, TUESDAY 19 APRIL 2005, ANNOUNCETHEIR INTERIM RESULTS FOR THE SIX MONTHS TO 31 JANUARY 2005 HIGHLIGHTS Six Months to 31 January 2005 2004 Increase Turnover - £m 493.9 436.5 13.2%Operating profit - £m 96.2 81.0 18.8%Profit before taxation - £m 91.7 77.4 18.5%Basic earnings per ordinary share - pence 56.5 47.9 18.0%Dividend per ordinary share - pence 13.0 9.3 39.8%Net asset value per ordinary share - pence 627 521 20.3% CHAIRMAN, HOWARD DAWE SAID "I am delighted to announce yet another record set ofresults". Furthermore "Bellway is pleased to announce an increase of almost 40%in the interim dividend". He added "The Group has also been able to maintain ahealthy order book". He concluded "The Board is confident of ... recording itsfourteenth consecutive year of organic growth". 2005 2004* Homes sold - no. 2,930 2,728* Average selling price - £000 167.0 156.9* Operating margin - % 19.5 18.5* Return on average capital employed - % 27.8 28.0* Land bank - plots with planning permission 21,200 19,600* Shareholders' funds - £m 725.9 602.8 FOR FURTHER INFORMATION, PLEASE CONTACT JOHN WATSON, CHIEF EXECUTIVE OR ALISTAIRLEITCH, FINANCE DIRECTOR TUESDAY 19 APRIL - THURSDAY 21 APRIL J WATSON: 07855 337007 A LEITCH: 07855 337001 THEREAFTER: 0191 217 0717 BELLWAY p.l.c CHAIRMAN'S STATEMENT Interim Results In my first statement as Non-Executive Chairman, I am delighted to announce yetanother record set of results for the six months ended 31 January 2005. Total legal completions rose by over 7% to 2,930 homes, with an increase in bothprivate and housing association sales. Of these total completions, 77% werebuilt on brownfield land. The average sales price increased by more than 6% to£167,000 and total turnover for the Group advanced by over £57 million to £493.9million from £436.5 million. Operating profit grew by more than £15 million to£96.2 million, with the operating margin advancing to 19.5% from 18.5% as theGroup continued to achieve a more balanced trading position between the firstand second halves of our financial year. Net interest payable of £4.5 million iscovered more than 21 times and gearing of 22.6% compares favourably to 31.3% atthis time last year. Profit before tax has increased by 18.5% from £77.4 millionto £91.7 million, a new record for the first six months. Earnings per ordinaryshare of 56.5p rose from 47.9p at the same time last year. Dividend As part of the Group's policy to bring the interim dividend in line with theactual trading performance, Bellway is pleased to announce an increase of almost40% in the interim dividend from 9.3p to 13p per ordinary share. In the absenceof unforeseen circumstances, it is the Board's intention to recommend anincrease in the total dividend for the year of around 25%. Total dividend,therefore, will have almost doubled in three years. The dividend will be paid on Friday 1 July 2005 to ordinary shareholders on theCompany's Register of Members at the close of business on Friday 10 June 2005.The ex-dividend date is Wednesday 8 June 2005. Trading & Outlook The calendar year 2004 was one of contrasting halves. In the first half, thehousing market was extremely buoyant, whilst the second half was tempered byconsecutive interest rate rises in May and June which resulted in customersprolonging their purchase decisions. Against this backdrop, Bellway continued tosell forward and already has 97% of this year's target secured. The Group hasalso been able to maintain a healthy order book which currently stands at £627million compared to £631 million at the same time last year. In order tocontinue this growth in more difficult markets the Group has been working hardto increase the number of sales outlets which are now some 10% above the levelof a year ago. The calling of a General Election to be held on 5 May and theattention and uncertainties that such an event attracts may further prolongbuying decisions but with our position for this year close to being secure, wecan work towards strengthening the forward order book for the next financialyear. Of particular note at the divisional level, we are pleased with the performanceof our East Midlands and West Lancashire divisions where turnover in both caseswill have more than doubled in a three year period. The new South West division,which started trading only last financial year, has now secured new officepremises south of Bristol, improving the Group's geographical footprint in thesouth west. Our Thames Gateway North division will start contributing in thenext financial year and we intend to open further new divisions as the Groupcontinues to grow organically. This increased operational network should helpBellway attain its previously stated target of selling 10,000 homes per annum by2010. The more challenging marketplace has led to an increasingly selective approachto land acquisition, nevertheless the land bank with planning permission on 31January 2005 stood at 21,200 plots, compared to 20,700 plots at 31 July 2004. Itis augmented by land we owned or controlled at 31 January 2005 and is heldsubject to the receipt of planning permission. These plots have increased to15,600 from 14,500 at July 2004, giving an overall land bank of 36,800 plots,equivalent to more than five year's supply. In addition, we owned or held underoption at 31 January 2005 around 3,000 acres of typically greenfield land, whichwe continue to progress through the planning system. Our growth aspirations are, in part, underpinned by our product profile which isfirmly focused on the lower to middle market as demonstrated by our averagesales price which remains one of the lowest in the industry. Bellway's growinginvolvement in the Government's pathfinder projects in Birmingham, Liverpool andNewcastle will secure a new source of land which will include a high proportionof housing association and first time buyer sales helping to underpin theGroup's growth plans and provide a solid foundation for the future. People These results, as ever, would not be possible without the efforts of ouremployees in tandem with our many suppliers, sub-contractors and partners. TheBoard wishes to offer its sincere gratitude to everyone concerned. Future Prospects Our wide geographical spread and management structure allows us to adapt tolocal housing needs which should serve us well as the market returns to a morenormal, sustainable level. The Board is confident of delivering another recordset of results for the year ending 31 July 2005, thereby recording itsfourteenth consecutive year of organic growth. For all these reasons, the Boardremains optimistic about the Group's future prospects. H C Dawe Chairman 18 April 2005 BELLWAY p.l.c. GROUP PROFIT AND LOSS ACCOUNT Half year ended Half year ended Year ended 31 January 31 January 31 July 2005 2004 2004 £m £m £mTurnover 493.9 436.5 1092.6 ==== ==== ====Operating profit 96.2 81.0 213.3Net interest payable (including associated undertakings) (4.5) (3.6) (7.8) ______ ______ ______Profit on ordinary activities before taxation 91.7 77.4 205.5Taxation (27.5) (23.2) (61.7) ______ ______ ______Profit on ordinary activities after taxation 64.2 54.2 143.8Dividends on equity and non-equity shares (15.6) (11.4) (29.8) ______ ______ ______Retained profit 48.6 42.8 114.0 ==== ==== ====Dividend per preference share 4.75p 4.75p 9.5pDividend per ordinary share 13.0p 9.3p 25.0pEarnings per ordinary share - basic 56.5p 47.9p 127.5pEarnings per ordinary share - diluted 56.0p 47.3p 126.1p BELLWAY p.l.c. GROUP BALANCE SHEET At At At 31 January 31 January 31 July 2005 2004 2004 £m £m £m £m £m £mFixed assetsTangible assets 16.2 16.0 16.6Investments 0.0 0.1 0.1 ______ ______ ______ 16.2 16.1 16.7Current assetsStocks 1105.7 1020.8 1025.8Debtors 40.8 36.3 38.2Cash at bank and in hand 57.9 11.9 111.9 ______ ______ ______ 1204.4 1069.0 1175.9 ______ ______ ______Creditors due within one yearBank borrowings (49.0) (40.7) (15.0)Other creditors (252.8) (255.1) (321.8) ______ ______ ______Net current assets 902.6 773.2 839.1 ______ ______ _____Total assets less current liabilities 918.8 789.3 855.8Creditors due after more than one yearBank borrowings (173.0) (160.0) (160.0)Other creditors (including provisions for (19.9) (26.5) (20.7)liabilities and charges) ______ ______ ______ (192.9) (186.5) (180.7) ______ ______ ______NET ASSETS 725.9 602.8 675.1 ==== ==== ====Capital and reservesCalled up share capital 34.1 34.0 34.0Reserves and share premium 691.8 568.8 641.1 ______ ______ ______SHAREHOLDERS' FUNDS 725.9 602.8 675.1 ==== ==== ==== The interim accounts were approved by the Board of Directors on 18 April 2005. The financial information for the two half year periods is unaudited and doesnot constitute statutory accounts within the meaning of the Companies Act 1985.The figures relating to the year ended 31 July 2004 are an extract fromstatutory accounts within the meaning of section 240 of the Companies Act 1985which have been delivered to the Registrar of Companies and on which theauditors gave an unqualified audit report. The taxation charge is calculated by applying the directors' best estimate ofthe annual effective tax rate to the profit for the period. The interim accounts have been prepared on the basis of the accounting policiesadopted for the year ended 31 July 2004 in all material respects. These policiesare detailed in the Company's Annual Report and Accounts for that year. BELLWAY p.l.c. GROUP CASH FLOW STATEMENT Half Year ended Half Year ended Year ended 31 January 31 January 31 July 2005 2004 2004 £m £m £m £m £m £mNet cash (outflow) / inflow from operating activitiesGroup operating profit 96.2 81.0 213.3Depreciation charge 1.6 1.8 3.6Profit on sale of fixed (0.1) (0.1) (0.3)assets(Increase) / decrease in (15.0) (94.0) (170.6)stocks - Land- Work in Progress (64.9) (68.8) 2.8Increase in debtors (2.8) (2.8) (2.3)(Decrease) / Increase in (58.7) (18.4) 26.5creditors ______ _______ _____ (43.7) (101.3) 73.0Net cash outflow fromreturns on investmentsand servicing of financeInterest paid (5.6) (3.5) (10.5)Interest received 1.4 0.6 1.4Dividends paid - non-equity (0.9) (0.9) (1.9) ______ _______ _____ (5.1) (3.8) (11.0)Taxation (35.2) (25.5) (54.8)Net cash outflow fromcapital expenditureand financial investmentPurchase of tangible fixed (1.6) (2.0) (5.9)assetsSale of tangible fixed 0.5 0.7 2.3assets ______ _______ _____ (1.1) (1.3) (3.6)Equity dividends paid (17.6) (15.4) (25.7) ______ ______ ____Net cash outflow before (102.7) (147.3) (22.1)financingNet cash inflow fromfinancingIssue of ordinary sharecapital on exerciseof share options 1.8 0.1 1.8Purchase of own shares by employee (0.1) 0.0 (1.1)share option plans(Decrease) / increase in bank loans (13.0) 15.0 15.0due within one yearIncrease in bank loans due 13.0 30.0 30.0after more than one year _______ _______ _______ 1.7 45.1 45.7 _______ _______ _______(Decrease) / increase in (101.0) (102.2) 23.6cash in period ======= ======= ======= This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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